Southeastern airlines's daily flight from atlanta to charlotte uses a boeing 737, with all-coach seating for 120 people. in the past, the airline has priced every seat at $138 for the one-way flight. an average of 78 passengers are on each flight. the variable cost of a filled seat is $26. aysajan eziz, the new operations manager, has decided to try a yield revenue approach, with seats priced at $81 for early bookings and at $193 for bookings within 1 week of the flight. he estimates that the airline will sell 67 seats at the lower price and 37 at the higher price. variable cost will not change.

The former chairman of the federal reserve, alan greenspan, used the term "irrational exuberance" in 1996 to describe the high levels of optimism among stock market investors at the time. stock market indexes such as the s& p composite price index were at an all-time high. some commentators believed that the fed should intervene to slow the expansion of the economy. why would central banks want to clamp down when the economy is growing? a. to block the formation of unsustainable speculative asset bubbles. b. to curtail excessive profits in the banking system. c. to prevent inflationary forces from gathering momentum. d. all of the above. e. a and c only.